Bill Text: TX HB338 | 2017-2018 | 85th Legislature | Enrolled
Bill Title: Relating to acreage contracts and quantity contracts for the purchase of agricultural products.
Sponsorship: Partisan Bill (Republican 2)
Status: (Passed) 2017-06-15 - Effective on 9/1/17 [HB338 Detail]
Download: Texas-2017-HB338-Enrolled.html
| H.B. No. 338 | ||
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| relating to acreage contracts and quantity contracts for the | ||
| purchase of agricultural products. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. This Act may be cited as the Producer Protection | ||
| Act. | ||
| SECTION 2. Subtitle D, Title 5, Agriculture Code, is | ||
| amended by adding Chapter 104 to read as follows: | ||
| CHAPTER 104. ACREAGE CONTRACTS AND QUANTITY CONTRACTS | ||
| Sec. 104.001. DEFINITIONS. In this chapter: | ||
| (1) "Acreage contract" means a contract that requires | ||
| a producer to deliver to a purchaser all of the production of a | ||
| specified agricultural product grown on land described in the | ||
| contract, unless clearly and conspicuously stated otherwise in the | ||
| contract's language. The term does not include a contract that | ||
| requires a producer to deliver a specified quantity of an | ||
| agricultural product. | ||
| (2) "Producer" means a person who produces an | ||
| agricultural product and sells the product under an acreage | ||
| contract or a quantity contract. | ||
| (3) "Purchaser" means a person who purchases an | ||
| agricultural product under an acreage contract or a quantity | ||
| contract. | ||
| (4) "Quantity contract" means a contract that requires | ||
| a producer to deliver to a purchaser a specified quantity of an | ||
| agricultural product, regardless of the amount of the product grown | ||
| by the producer. | ||
| Sec. 104.002. CONTRACT TYPE DISCLOSURE. A contract between | ||
| a producer and a purchaser regarding an agricultural product must | ||
| clearly and conspicuously state on its face that it is an acreage | ||
| contract or a quantity contract, as applicable. | ||
| Sec. 104.003. SUIT BY PURCHASER UNDER ACREAGE CONTRACT. A | ||
| purchaser may not file suit against a producer under an acreage | ||
| contract unless the producer knowingly fails to deliver to the | ||
| purchaser all of an agricultural product grown on specified land as | ||
| provided by the acreage contract. | ||
| SECTION 3. Chapter 104, Agriculture Code, as added by this | ||
| Act, applies only to a contract executed on or after the effective | ||
| date of this Act. A contract executed before the effective date of | ||
| this Act is governed by the law in effect when the contract was | ||
| executed, and the former law is continued in effect for that | ||
| purpose. | ||
| SECTION 4. This Act takes effect September 1, 2017. | ||
| ______________________________ | ______________________________ | |
| President of the Senate | Speaker of the House | |
| I certify that H.B. No. 338 was passed by the House on May 4, | ||
| 2017, by the following vote: Yeas 139, Nays 3, 3 present, not | ||
| voting. | ||
| ______________________________ | ||
| Chief Clerk of the House | ||
| I certify that H.B. No. 338 was passed by the Senate on May | ||
| 24, 2017, by the following vote: Yeas 31, Nays 0. | ||
| ______________________________ | ||
| Secretary of the Senate | ||
| APPROVED: _____________________ | ||
| Date | ||
| _____________________ | ||
| Governor | ||
